Free Current Accounts

Compare Best UK Current Accounts

Earn up to 5% AER on your cash!

Some of the best rates of interest you will get on cash currently are on current accounts. E.g Nationwide offer 5% AER fixed (4.89% gross pa) in credit interest on balances up to £2,500 for the first 12 months

You can also benefit from switching your account. A number of banks now offer switch incentives. HSBC are currently offering £150 if you switch your current account to them. The good news is that switching is a lot easier than it used to be – basically the new bank account provider will do all the work in setting up your direct debits and standing orders etc.

For students looking for a good account Santander UK are offering a free railcard for 4 years as long as you are 18 and are in or are about to enter into full time further education.

Up to 3% cashback on household bills – 1% on water, council tax bills and Santander mortgage payments, 2% on gas and electricity bills, and 3% on mobile phone, home phone, broadband and paid-for TV packages

Visa Debit Card

Mobile app

Must be 18 or older and a UK resident Interest

Cashback only available when you set up at least two eligible Direct Debits

Monthly fee of £5

Must pay a minimum of £500 into the account each month

Current Account Offers With Switching Incentives

Account

Santander 1|2|3 Student Current Account

Funding Required

£500 per term

Overdraft

£1,500 Interest Free increasing to £2,000

Details

A free 4-year Santander 16-25 Railcard which could save you 1/3 off rail travel in Great Britain

3% AER / 2.96% (variable) on balance from £300 up to a maximum of £2,000

An interest-free and fee-free Arranged Overdraft, up to £1,500 in years 1-3, then up to £2,000 if you stay on to year 5

Free 4-year Santander 16-25 Railcard which could save you 1/3 off rail travel in Great Britain

Access to 1|2|3 World offers, including preferential rates and special deals on other Santander products

Visa Debit card for making purchases and accessing your money at cash machines

No monthly account fee

Must be aged 18 or over & completing a full-time higher education course

Must pay in £500 each academic term, and register for Online Banking

Must be a UK resident for tax purposes

Free Current Accounts

Generally speaking, a free current account is a type of bank account that is advertised with no subscription charges or fees for customers. Although the majority of high street banks may typically offer this type of account to customers, it is recommended to shop around and compare current accounts as much as possible in order to find the best deal available.

As part of a free current account, customers can expect many of the same benefits and features that may be commonly included with most other current account subscriptions. Including:

Generally speaking, fee free accounts will provide only basic services. If you want additional services many banks now charge a monthly or annual fee.

If you are considering switching from your existing bank to a new free current account, it is recommended to weigh up your options and compare current account offers from several different providers in order to find the best deal available.

What if there are any problems?

Your new bank is responsible for contacting you before the switch date if there are any hitches with transferring your standing orders and direct debits – and incoming payments.

And the switching service is covered by a guarantee: the new bank must refund you if there are any charges because payments didn’t go through on time. But you have to ask them for this.

Can I keep my old current account open when I switch?

Yes – you can use the partial switch service and keep your old account open, transferring all or some of your payments. But the process isn’t covered by the service guarantee so it can take longer: possibly up to 20 working days. And there isn’t an automatic-redirect for the three years after you switch. A partial switch may not qualify for the incentives offered for switching (though that shouldn’t be the only reason why you change accounts).

What about transferring “recurring payments”?

Not all your regular bill payments may be made by direct debits or standing orders. Some service providers (such as telecoms services, online subscriptions, gym membership and payday loans) get you to set up a “recurring payment” or “continuous payment authority” which is linked to your debit or credit card

Because they’re linked to a card rather than directly to your bank account, they’re not included in the switching service (or covered by the guarantee).

It’s not always clear which are your continuous payment authorities: you won’t find them listed on your online banking portal. When you set them up you were asked for you card details (“please read me the long card number”) rather than your bank account and sort code numbers.

You’ll need to check your monthly card statements: any regular payments going out each month that are not marked as DD (direct debit) or SO (standing order) are likely to be continuous payment authorities.

If you want to keep paying for this service (or loan) in this way, you’ll need to contact each provider and tell them your new card details as soon as you have them.

This may sound like a lot of bother, but it is useful to check periodically what’s going out of your account regularly: there may be services you’re not using (such as fast delivery, or additional online data storage) that you want to cancel.

What about the individuals who have my bank account details, for sending occasional payments?

If you can remember the family members or friends who occasionally transfer money directly to your bank, you can send them your new account details and ask them to set them you up as a new Payee.

It’s probably not a good idea to just email all your Contacts with your new account details. If you’re concerned about email security, the most secure way of sending bank account details to specific people is via WhatsApp.

And if any payments are accidentally made to your old account, for 36 months (three years) after you’ve switched, your new bank or building society will arrange for any payments to be automatically redirected to your new account. They will also contact the sender and give them your new account details.

When should I choose to make the transfer?

You can pick any convenient day in the month, so long as it’s more than a week away, and not a weekend or a bank holiday.

If all your regular payments tend to go out of your account around the same time it’s best to choose a time of the month when your bank account isn’t so busy.